Jinwu Financial News | CITIC Construction Investment Research Report shows that in 2023, Yao Ming Biotech (02269) achieved revenue of 17 billion yuan, an increase of 11.6% over the previous year, and a 38% increase in routine business. The number of new projects signed throughout the year reached 132, and the number of commercialized projects reached 24. Global biotech financing has been recovering since 23Q4, and this trend can still be seen. Looking ahead to 2024, the company expects the R&D side to continue to grow steadily, the number of PPQ projects will continue to increase, the Irish base is progressing smoothly and is expected to achieve break-even, and overseas production capacity will continue to expand. Considering the pace of new projects signed in '23 and the pace of company adjustments, the 24H2 revenue and profit growth rate is expected to be higher than in the first half of the year. The company continues to be deeply involved in biopharmaceutical CDMO. The number of new projects, innovative molecular types and integrated business models have always helped the company increase its global market share, and the bank continues to be optimistic about the company's development.
The bank believes that the company's industry recognition is still increasing, and the incremental advantage is expected to be transformed into an inventory advantage, leading to a steady rise in the company's biopharmaceutical CRDMO market share. At the same time, the company's integrated project pipeline continues to expand and move forward smoothly, and the funnel projects the company has reserved are expected to be scaled up to achieve long-term healthy development. The company is expected to achieve revenue of 17.91 billion yuan, 21.31 billion yuan, and 25.27 billion yuan respectively in 2024 to 2026, corresponding growth rates of 5.1%, 19.0%, and 18.6%; net profit to mother is 3.4 billion yuan, 4.34 billion yuan, and 5.49 billion yuan respectively. The corresponding growth rates are -0.1%, 27.9%, and 26.4%, respectively. The profit growth rate in 24 years is mainly due to the increase in overseas personnel due to the commissioning of the company's overseas bases. Secondly, the company continues to strengthen overseas based on market conditions With BD investment, the sales expense ratio is also expected to increase; adjusted net profit was 4.83 billion yuan, 5.74 billion yuan, and 6.42 billion yuan respectively, corresponding growth rates were -2%, 19%, and 12%, respectively. The corresponding adjusted PE multiples were 11 times, 10 times, and 9 times, respectively, maintaining the “buy” rating. (RMB 1 = HKD 1.1).